Mon, October 25, 2021

in-focus

Baht weakens, may continue streak as dollar strengthens


The baht opened at 29.96 to the US dollar on Wednesday, weakening from Tuesday’s close of 29.86.

 

The Thai currency is likely to move between 29.88 and 29.98, Krungthai market strategist Poon Panichpibool said.

 

He also said the baht would weaken slightly, due to a strengthened dollar, while investors in Asia would offload risk assets.

 

Financial markets were cautious, with risk assets being sold for speculation after long-term bond yields – such as the US Ten-Year Treasury yield – rose in value. The US yield grew more than 10 basis points to 1.30 per cent, the highest in a year. This increase pressured the gold price, which dropped 1.3 per cent to $1,795 (Bt53,797) per ounce.

 

The increase led to the dollar strengthening over other main currencies. The dollar index has lately reached 90.5 points, pressuring the Australian dollar and euro to weaken by 0.3 and 0.2 per cent, respectively.

 

On Wednesday, markets expected industrial production in the US to rise by 0.4 per cent from last month, while the capacity utilisation rate would reach 74.8 per cent to support increased demand.

 

Published : February 17, 2021

By : THE NATION